Palo Alto to bid for post office

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The U.S. Postal Service is looking to downsize its downtown Palo Alto operation at 380 Hamilton Ave., pictured here on Wednesday, Feb. 15, 2012. A representative of the agency will give a presentation at TuesdayÕs city council meeting, Feb. 21, 2012, on the process for selling the property.(Kirstina Sangsahachart/ Daily News)

Palo Alto will be among the bidders when the historic downtown post office hits the market later this year.

The city council voted 7-0 Monday night in favor of submitting and negotiating an offer on the building at 380 Hamilton Ave. Council members Pat Burt and Gail Price were absent from the meeting.

“I think this is a great opportunity for the city to take one of the landmark signature buildings and turn it into a house of the people,” said Vice Mayor Nancy Shepherd. “This really is a jewel in our community.”

Designed by renowned architect Birge Clark, the Spanish Colonial Revival building opened for business in 1932. It was reportedly the first purpose-built post office in the country.

The property is one of many the U.S. Postal Service has designated for sale in recent years as it looks to slash a multibillion-dollar debt and “right-size” its operations. The federal agency anticipates the sale will save $1 million in operational costs over the next decade.

If its offer is accepted, the city could also end up saving money in the long run. The Development Center could be moved out of leased office space across from City Hall and into the roughly 20,000-square-foot post office.

Factoring in improvements that would need to be made, the building could be paid off in 10 to 15 years, according to Curtis Williams, the city’s director of planning and community environment.

A handful of residents called on council members to submit and negotiate an offer for the post office. They said they trusted the city more than a private developer to preserve its historic character.

“It’s the heart and the soul and the history of Palo Alto and a good business deal,” said Beth Bunnenberg, a member of the Palo Alto Historical Association and the Historic Resources Board.

Added longtime resident Doug Graham: “It may be one of the things that you remember from your time on the council as being very productive and very important to the people in this city.”

The absence of a crowd in the council chambers Monday was not a sign of disinterest from the community, said Stephanie Munoz.

“Everybody expects you to buy that post office,” Munoz told council members. “If you don’t, you’re going to have a hornet’s nest. It’s a crown jewel. People love the post office.”

Although hopeful about the city’s chances, Council Member Liz Kniss warned that there could be competition for the property.

“Our intent is to own the post office. Our challenge could be if somebody else is determined to own the post office,” Kniss said. “We cannot guarantee that we will be the ones to get it.”

The Postal Service, however, may be more inclined to go with the city. The federal agency wants to maintain a presence in downtown and the city is offering to set aside 3,200 square feet in the building for that purpose.

The property isn’t expected to hit the market until June. A city staff report noted that only cash offers will be considered but did not say how much the city is proposing to pay; an appraisal of the post office is currently being kept confidential for “negotiation purposes.”

Jason Green is a breaking news reporter for the Bay Area News Group. He works week nights and spends most of his time covering crime and public safety. A graduate of UC Santa Barbara and the University of Southern California, he cut his teeth at the Inland Valley Daily Bulletin and the Palo Alto Daily News, and has been with the Bay Area News Group since its inception.

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